Leasing vs Financing (Leasing vs Buying)

Leasing vs Financing (Leasing vs Buying)

When it comes the time to find a car to drive or a place to live, how do you decide whether to lease or to finance? Chances are most people tend to investigate what the monthly payments would be and choose whichever is cheaper. But do you ever stop to think of all the things that should be a part of your decision? Did you know there are websites out there to help you determine how much you can afford? What your monthly payment would be? There is a lot of information available to you to help make this process an easier one for you. Since finding the right car is something most people do before they find that perfect place to live, lets start with determining the difference in leasing and buying a car.

Since the 1990¡¦s leasing of cars has skyrocketed which nowadays most people tend to lease their car because leasing offers an attractive and affordable means of driving a new car every few years. In the past few years, car dealership have been running amazing deals such as ¡§no down payment¡¨ or ¡§low, attractive payments¡¨ these advertisements tend to make leasing even more appealing than financing. And because of these incentives you can often buy a more expensive, more luxurious car for the same payment of financing a lower priced car.

Leasing in a nutshell. When leasing you are paying for the use of the car rather than paying for the car itself. In other words, your lease payment covers the depreciation of the cars over the length of the lease. Usually you can lease a car with zero down but the more you put down the lower your monthly payments will be. You as the lessee, are responsible for maintaining the car during the term of your lease and at the end of your lease you have the option to turn it in and walk away from it or choose to purchase it for the residual value of the car. Seems simple enough but there are many other things to consider before leasing a car.

Leasing is not for everyone, but for those who are willing to except the challenge to stay with in the restrictions you are given on the car and like to have a new car every 3 years or so, leasing may be for you. There are five main questions that everyone needs to ask themselves before leasing a car:

„P Do you become easily bored ...

... middle of paper ...

...opefully Mary decides to follow our advice with buying her home and leasing her home. We feel these decision will be most beneficial to her and will give her the most for her money in the short and long term. Seeing the figures in the format we set-up for Mary really helps a person to understand where there money is going and what goes into consideration when buying or renting a home and buying or leasing a car. It puts the data into a form the anyone can understand not just number people. Good Luck to Mary and the best wishes for her future.

Bibliography

1) http://autos.msn.com/advice/article.aspx?contentid=9274&src=newresearch

2) http://autos.msn.com/advice/article.aspx?contentid=4021832&src=lease

3) http://houseandhome.msn.com/improve/guides/taxes.aspx

4) www.dehanas.com/vs.html

5) http://houseandhome.msn.com/Financing/Experts/Homeownershipforsingles.aspx

6) http://okok.essortment.com/rentinghouse_rzlt.htm

7) http://www.alanford.com/loans_vrs_lease.htm

8) http://houseandhome.msn.com/financing/guides/budgettobuy.aspx

9) http://houseandhome.msn.com/financing/roadmap.aspx

10) http://autos.msn.com/advice/article.aspx?contentid-4021830&src=lease

11) www.timevalue.com